August 20th, 2011
12:56 PM ET

Jeff Sachs: We need an investment-led recovery

On GPS this Sunday at 10am ET/PT, making sense of the markets: What are investors so fearful about? What can be done to stabilize the economy? And just how close to the brink is Europe? Fareed Zakaria leads an intelligent discussion with economist Jeffrey Sachs, TIME’s Rana Foroohar, CFR’s Richard Haass, and British historian Andrew Roberts.

Also, John Miller, one of the few people to have met both Osama bin Laden and Ayman al-Zawahiri gives Fareed the latest intel: How much of a threat al Qaeda is today? What other threats we ought to be concerned about? And what sorts of attacks might be in the works?

Also on the show, a smart take on economic lessons the West can learn from Iran; and a German tale of how not to be a spy.

But first, here is Jeff Sachs on what American needs in order to grow again:

Fareed Zakaria: What does America need to do to grow again?

Jeff Sachs: Consumers are exhausted.  Our economies are not competitive right now.  There was a little blip, but it's obviously gone away.  We're at stagnation at best and maybe entering another recession right now. So we need a different approach. My view is that we can't have consumption-led growth anymore, we have to really build the foundations of our economies both in the U.S. and Europe.  We have to become more competitive with our new competitors. We have to have better skills, technology, infrastructure.  That means an investment-led recovery, quite different from the short-term stimulus.

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Topics: Economy • GPS Show

soundoff (5 Responses)
  1. Carl van Zijll de Jong

    True, we need to invest!
    However, the only true investment is in people; first in yourself, then your children, and finally in your neighbour. This, to lay up treasures where neither moth nor rust doth corrupt, and where thieves do not break through nor steal.

    August 20, 2011 at 3:03 pm | Reply
  2. james Dean

    Is there no one but Jews that have an opinion, How about trying to have a real show instead of this fake jew propoganda your showing, they always seem to get on both sides of the issues and dominate the conversation to come to their on self interest. Really companies are sitting on 2.5 trillion in cash and are not investing in jobs and your guests comments that we should give them more tax breaks to start creating jobs. I have a different solution its called pay your fair share and have the people decide where the money gets invested.

    August 21, 2011 at 2:45 pm | Reply
    • Hilary

      Sadly the second part of your comment which makes a lot of sense, is spoiled by the language of the first part which targets Jews in unfortunately tangible, unpleasant, terms. It hurts the foundation to your argument. It gives any reader the opportunity to then reject – or not even read – your next words.

      And I'm a supporter of the Palestinian cause out in the Middle East – with no time for what is happening over there or the support it receives from the Jewish community here in America. However, that does not mean I'm anti-Semitic. Unfortunately your words would indicate that you are.

      August 22, 2011 at 9:57 am | Reply
  3. fritz

    thank you, thank you, thank you.
    jeff sachs assertion that d.c. is a duopoly is THE story of our times and media is tripping over itself to miss it. Why?
    at least a hundred clear examples of the fallout from our emerging plutocracy or, in the larger sense, the New World Order are readily identifiable at any given moment yet media has failed to pick up the scent in virtually ANY instance since ghwbush first coined the phrase. Why?
    if you, fareed Zakaria, between now anf the election were to illustrate one story per week of the plutocracy's deliberate collapse of the United States and the democracy for which it is known , then perhaps other media might help save the species, too. Why Not?

    August 21, 2011 at 9:32 pm | Reply
  4. ss

    Like many millions before me, i came to this great country and took advantage of the American dream. I know there are smarter people who might have thought of better&bigger ideas. This is my attempt at simple practical one, that i think can sell lot of homes and give a small boost to the economy.

    I have lived in this country for about 12 years and have not invested a single penny in here, all my money is in my country, what is stopping me is my visa status, i have been in line for green card for about 10 years. There are at-least 50 guys i know personally in the same boat including my buddy i shared my suitcase with when i came into this country.

    i think there are several hundreds of thousands from China, india and other nationals in similar situation. There is a NIW(National interest Waiver) clause in the green card process that accelerates the green card process, if this can be extended to everyone who buys a home in this country, i believe will sell minimum 50,000 homes for the next few years.

    just a thought

    September 2, 2011 at 5:46 am | Reply

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